Sony Vegas Movie Studio HD Platinum 10, video clarity?

Hi, I ordered Sony Vegas Movie Studio HD Platinum 10 a couple weeks ago, and got it in the mail a few days ago. I practiced editing a video and put it on you tube to see what it was like, and parts of it were laggy and blurry. I tried putting the preview quality to best and it still looks basically the same. I... show more Hi,
I ordered Sony Vegas Movie Studio HD Platinum 10 a couple weeks ago, and got it in the mail a few days ago.
I practiced editing a video and put it on you tube to see what it was like, and parts of it were laggy and blurry. I tried putting the preview quality to best and it still looks basically the same. I have a Flip Ultra HD Camcorder 3rd Generation and the picture on it is great! But I don't know how to fix it on Sony Vegas Movie Studio HD Platinum 10. (it says its HD and all, but it doesn't look it!) (I also don't convert the video files or anything, just upload them from my flip, then from my Flip Videos file folder, I put them into the Movie Studio. So if I have to convert files or anything, please tell me what to convert it to, and how! Thanks so much!. )

So, anyway to fix it would be greatly appreciated. Thanks for you time, and help!! :)
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